Negotiations between the U.S. and South Korea on a trade and security agreement remain unresolved, nearly two weeks after Presidents Donald Trump and Lee Jae Myung announced a breakthrough. Officials say the delay centers on South Korea’s request to build a nuclear-powered submarine.
While Washington has approved Seoul’s use of nuclear fuel, the factsheet outlining the deal is still under review. U.S. departments are adjusting their positions and finalizing wording, leaving the public release pending, News.Az reports, citing Reuters.
The delay has sparked economic concerns: the South Korean won fell 0.7% to a seven-month low of 1,467.5 per dollar, while Hyundai Motor reportedly loses about $211 million monthly due to tariff uncertainties affecting U.S. exports.
The submarine issue highlights a key tension: President Trump indicated the vessel would be built in a U.S. shipyard, whereas Seoul seeks domestic construction. Analysts question the U.S.’s willingness to transfer sensitive nuclear and defense technology.
Despite these hurdles, officials say the trade portion of the deal is finalized, and a memorandum of understanding on South Korea’s $350 billion investment package is ready but unsigned. Timing for the official announcement remains unclear.
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